NIFTY WEEKLY REPORT FOR 27 FEB TO 03 MAR 2017

WEEKLY RESISTANCE FOR NIFTY: 8938, 8981, 9012, 8942

PIVOT POINT: 8895

WEEKLY SUPPORT FOR NIFTY :  8865,8834,8791,8748

WEEKLY CHAT FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 8960, 8972, 8989,8905

PIVOT POINT: 8948

DAILY SUPPORT FOR NIFTY :  8932, 8915, 8903,8891

DAILY CHART FOR NIFTY

Sensex opened the week at 28481, made a high of 29065, low of 28419 and closed the week at 28892. Thus it closed the week with a gain of 424 points. At the same time the Nifty opened the week at 8818, made a high of 8982, low of 8809 and closed the week at 8939. Thus the Nifty closed the week with a gain of 118 points.Indian equity, forex, money will remain closed today to observe Mahashivratri. The market on Thursday settled flat after a smart rally thanks to gains in IT and telecom stocks on the expiry of February derivative contracts.The Sensex crossed its crucial psychological of 29,000 in intraday trade, while the Nifty also went above its 52-week high for the first time since September 2016.

RELIANCE JOINS THE BULL PARTY.

With every passing week, the indices are continuing their journey towards the top. As a result, the indices have moved higher and are now within striking distance of life time highs. A critical breakout will be witnessed if the Nifty closes above 8968 on weekly chart. After such a breakout, one should not be surprised to see another 10% being added to the indices. Interestingly, the old war horse Reliance Industries has joined the bull party on Wednesday when it managed a multi-year breakout by going up an astonishing 10% in a single day. With heavyweights like Reliance participating in the rally, market seems set to reclaim the all-time high levels and more.

NIFTY SET TO TEST LIFE-TIME HIGHS

Key intraday support is in the 8,930-8,900 zone which can be tested if the NIFTY fails to sustain above 8,930.A break below 8,930 looks less likely. A reversal from 8,930 can take the contract lower to 8,900-8,850 once again. A strong break above 8,960 will pave way for the next target of 9,000 or even higher levels thereafter.Traders can wait for dips and go long near 8,935. Stop-loss can be placed at 8,910 for the target of 8, 995, and 9020.Outlook for the contract will turn negative only if the index futures declines below 8,900 decisively. But such a strong break looks unlikely at the moment.

TECHNICALLY SPEAKING.

MACD and Price ROC are both positive and continue in Buy mode. RSI (76) and Stochastic Oscillator %K (88) are both in Overbought Zone and continues to exhibit strong Bullish momentum. ADX is at 39 which suggest that the Uptrend is very strong. Directional Indicators continue in Buy mode as +DI remains above –DI. MFI (63) suggests Positive Money Flow. OBV continues in Buy mode and continues to make higher top, higher bottom formation. Bollinger Band continues in Buy mode. Thus Price and Momentum Oscillators are indicating bullishness in the near term. This week, both the indices continued to remain above the short term average of 20dma  Nifty – 8775, medium term average of 50dma Nifty – 8451 and even the long term average of 200dma Nifty – 8424. Thus the trend in the short term, medium term and even the long term time frame continues to remain upwards.